Paypal Holdings Inc: PYPL Stock Is Tarnished But Not Broken
- Buz Investors PYPL Stock Is Tarnished (NASDAQ:PYPL) stock. I had reason to believe that PayPal stock was on the verge of creating an unprecedented bullish run that would take PYPL stock to new heights.
- The catalysts that founded my views were based on a bullish price pattern and a positive earnings report. PayPal had reported earnings that beat analyst expectations, and investors were so enthused with this report that the stock price surged the following day. This surge in price completed a bullish pattern that was in development for many months.
- I thought that the wheels were in motion on this locomotive train and that new highs were almost a certainty. Funny how life works sometimes. Whenever I feel so certain about an outcomeWhenever I feel so certain about an outcome, the complete opposite event has a habit of occurring; examples include Brexit and Donald Trump, just to name a few.
PYPL Stock Is Tarnished
My Bullish view is in jeopardy, as the price of PayPal Stock has failed to follow through, and the highs set on the day after the earnings report was released mark the all-time high. Pypl Stock has proceeded to sell off, and and the bullish pattern I outlined in my previous report has failed. This places my bullish bias in a precarious situation, but not all is lost; there is still some hope left that a bullish outcome can still develop.
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PYPL Stock Is Tarnished
When the price finally returns to test that level of resistance again, the cup is created. The second time the price gets rejected by resistance and a smaller reaction occurs, the handle is created. This bullish pattern is completed when the price is finally able to break above the resistance level that rejected the price on the two previous occasions.
In October, a bullish breakout was set to move forward, but the price has failed to follow through. Not only has the price failed to follow through; PayPal stock has fallen below the resistance level that signaled that the bullish pattern was complete.
PYPL Stock: Hanging on Hope
After a brief sell-off that began in 2016, PYPL stock has been trading with a bullish bias and, as a result, a bullish trend has developed. This bullish trend is highlighted on the chart above as an uptrend line, and it is created by connecting the troughs on the price chart.
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